Bould Brothers Coffee: Planning for Growth Report - Analysis

This report provides a comprehensive growth plan for Bould Brothers Coffee, a small coffee shop in the UK. It begins with an introduction outlining the importance of strategic growth planning in a competitive market. The report analyzes key growth considerations using Porter's Generic Strategies and the GE McKinsey Matrix, recommending a differentiation strategy and franchising for expansion. Task 1 focuses on the analysis of key considerations of growth opportunity. Task 2 evaluates growth opportunities using the Ansoff growth matrix, assessing market penetration, product development, and market development strategies, each with their advantages and disadvantages. Task 3 analyzes potential funding sources, including their benefits and drawbacks, while Task 4 designs a detailed business growth plan, complete with financial information and strategic objectives. Finally, the report evaluates exit and succession strategies, considering their advantages and disadvantages to ensure long-term sustainability and success for Bould Brothers Coffee.

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main body .......................................................................................................................................3
TASK 1............................................................................................................................................3
P1: Analysis of the key consideration of growth opportunity................................................3
P2: Evaluation of growth opportunity by Ansoff growth matrix ..........................................8
TASK 2..........................................................................................................................................10
P3: Analysis of the potential source of funding along with it’s one of its benefits and
drawback ..............................................................................................................................10
TASK 3..........................................................................................................................................13
P4: Designing of business growth plan , along with the financial information and strategic
objectives..............................................................................................................................13
TASK 4..........................................................................................................................................23
P5: Evaluation of exit and succession strategy along with consideration of advantages and
disadvantage ........................................................................................................................23
CONCLUSION .............................................................................................................................26
REFERENCES..............................................................................................................................27

INTRODUCTION
Planning for growth is one of the most important organization management function
which involves the consideration of multiple factors and business strategies in order to make the
effective growth and development plan. which should be competitive and sustainable for
growing in the exist and new market (Birkin, 2017). Business market is full of the competitors
due to which small business organization have to focus on development of their new branches
across the different location in order to meet the competitive edges and earn the higher revenue
along with development of brand name well known and stable organizations. Planning for
growth is the strategy to make small business entity higher at the national and global market (Yu,
2019). BOULD BROTHERS COFFEE, is this small scale coffee shop business in UK.
Developed by Max and Alex located in the 16 round church St, Cambridge CB5, 8AD. Offer
best speciality coffee e with freshly cooked products. In this report planning for growth is done
in context to the Bold brothers coffee, which is involving the analysis of key consideration of
growth opportunities, along with the analysis of growth opportunities by different tools.
Different source of funding along with its advantages and disadvantages also considered in this
plan. Then in context to the growth opportunities analysis, effective business plan is developed
along with the consideration of exit situations and strategies to manage it.
TASK 1
P1: Analysis of the key consideration of growth opportunity
The small business organisation what is already established in the selected market, if plan
for the growth then they need to consider various factors of organisation and market such as they
have to consider their resources and product portfolio that has how much potential this factors
are having in order to offer the growth opportunity for business. Along with internal factors there
are some other external factors which are the key consideration for growth such as the different
method of Business expansion for international and global level (Alemayehu, 2017). Broader
consideration of all important factors related to growth and development opportunity in context
to BOULD BROTHERS COFFEE.
Porter’s generic matrix

(Source: Porter's Generic Strategies, 2020)
This is one of the essential framework, also known as the Michael Porter's Generic
Strategies which help the organisation to identify the key factors by the aid of which organisation
can gain competitive edges and use it as a growth opportunity. Michael developed three
strategies. Such as cost leadership, differentiation and focus. Then he further divided focus into
two factor coast focus and differentiation focus (Widiatama, 2018).
Cost leadership- This strategy is involving planning for increasing market share by
reducing the cost of products due to which highest sale of the product help to increase the market
share. BOULD BROTHERS COFFEE use the strategy to increase the customers and
organisation revenue. This can be done by the offering the relevant cost or cost effective
products to the Cost restricted customers.
Differentiation- This is another strategy of growth and develop which used by the
organisation to meet competitive wages. What is involving the strategy to add uniqueness and
innovator properties on products and services in comparison to other competitors. By the help of

which organisation can use higher price rate strategy which can help to increase the revenue and
profit. But in order to use this strategy organisation have to consider various factor such as
product uniqueness, quality and durability. This is strategies can be good for BOULD
BROTHERS COFFEE as they are offering best quality products.
Cost focus and differentiation focus- This is another strategy of growth and
development which involves the application of cost leadership and differentiation selectively at
this more segment of selected market (Arbatani, and et. Al., 2019).
From the three Porter’s generic matrix strategies BOULD BROTHERS COFFEE
should use differentiation to develop business in the new and existing market with development
of new and modified products of good quality and taste. Differential strategy is can be the best
for BOULD BROTHERS COFFEE in terms of brand value development and higher growth with
higher profit.
GE McKency Metrix- This is a nine box matrix which is considering the different units
of organisation in context to the analysis of growth opportunity, Bible you waiting the strength
and be weakness of those units. There are two major group of the factors in context to which
different units of business is analysed by measuring them in three terms of potential at both
group of factors.
Industry attractiveness- This involves consideration of different business unit, such as
product, infrastructure, services, that how attractive these units are in the market according to
which organisation can choose one of them as a growth opportunity. But along with the
attractiveness business unit should be having the competitive strength.
Competitive strength- That is involving the consideration of products, location, market
segment, services and infrastructure. That how competitive are these units.
These two variables of factors is qualified into 3 categories of potential.
 High
 Medium
 Low
Then in context to this analysis organisation can use 3 different approaches of growth and
development management.
 Invest/grow
 Selective investment/earning

 Harvest/ divest
What is the GE-McKinsey Matrix?
(Source: What is GE-Mckisney Matrix, 2021)
If the selective unit of organisation is having the higher attractiveness and higher
competitive strength then there should be best investment by using that as a growth opportunity.
Another hand if the business unit is having medium attractiveness and medium competitive
strength then the unit should be and the business plan with selective investment. The last factor is
about business unit which is having lower attractiveness and lower competitive strength then it
should be harvested or divested from the business plan. BOULD BROTHERS COFFEE is
having best infrastructure, products, services and location. So organization have to use all these
units as a growth opportunity.

Growth opportunities:
Along with the business resources and product portfolio there are some another key
consideration of business growth and development opportunity.
Such as Digital platform- this factor has to be considered for analysing the growth opportunity
because that is the way a of leading at the global market by coordinating with the team through
virtual and internet connection.
In other hand Partnership is the mode of Business expansion for example by this process
Bould brothers Coffee can find partner in different location and foreign country to develop the
business model at that place.
Franchising- this is one of the best way of business growth and development because
that is involving the handover of brand name, resources and strategies through the franchise by
franchisor in order to run the business in different country which further add the equal share of
profit and brand value development at global level.
Merger- by this strategy organisation can merge with the foreign country and work
together to grow each other. Bould brothers use this strategy as growth opportunity to develop
in the new market by the help of merger.
Acquisition- this is the process which can be used by the higher performing organisation
to by the company of foreign country about to quit. Company can by the organisation of foraine
country and use their resources, name and staff to develop in that new country.
Vertical and horizontal- integration is a type of foreign direct investment what is done
among the participative country of economical integration. This helps to do free trading within
the participated country. bould brothers can use this strategies to effectively run their businesses
at different country .
Along with products and business unites there are some another elements which should
consider in the analysis of growth opportunities and competitive advantage. Such as
collaboration and RBV.
Collaboration- This is business strategy or methods of collective working and goal
achievements. But along with the working support it also helps to meet competitive advantages
by reducing the competition. This is one of the process which also comes under the category of
key consideration of growth opportunity. Because the availability of partners and legal
permission. bould brothers can extend their business at global level by the aid of this strategy.

RBV- This is the analytical tool which helps to analyze the competitive advantage and
growth opportunity. By evaluating resources of business interest of value, rare, inimitable and
organized. Such a the BOULD BROTHERS COFFEE is having some resources which reach
the competitive advantages and growth opportunities. Such as products and services of the
organization is valuable, rare, organized along with this the interior, marketing strategy and
staffs are also valuable, rare and organized. So the product and marketing strengths is can use as
growth opportunities.
Recommendation
In context to BOULD BROTHERS COFFEE some most appropriate growth
opportunity consideration models and tools are GE McKensy Matrix and franchising.
Because GC Matrix analysis of organization is indicates the competitive strength and industrial
attractiveness.
P2: Evaluation of growth opportunity by Ansoff growth matrix
There in the market of business, different factors of growth and development are
available in context to analysis of which different tools and techniques are used related to some
specific factors of growth. Such as in order to analyse the market and product development
opportunity for business and growth matrix is used in this report.
Ansoff growth Matrix
This is analytical tool which is also considered as a product and market expansion grid
which guide the organisation for market and product development opportunities and risk. This
involves the four strategies of growth and development which further analyse in context to the
organisation by considering the advantages and risk (Tsakalerou, 2018.).
Market penetration- This is the strategy of expanding the business at existing market
with existing product to make more customers by the help of effective strategies such as offer,
discounts and good quality of the product at reasonable price. In context to the BOULD
BROTHERS COFFEE market penetration will be lower risk opportunity of growth.

(Source: The Ansoff Matrix, 2020)
Advantage- That is the best growth opportunity in context to existing market for
increasing the customers and revenue at that market with the best offers and services. This is not
having any risk of loss as compare to other.
Disadvantage- This is strategy is limited to the existing market area, which not work for
the international business and higher revenues.
Product development- This is another Business expansion strategy which involves
development of new products for existing market with the varieties of facilities in that. This
helps to satisfy the existing customers and aid to make more customers from the existing market.
This strategy is having medium risk which can be managed by the Bold brother coffee because
they are having the best resources and values.
Advantages- Helps to attract the new customers from existing market and satisfy the
existing customers which have to make higher revenues.
Disadvantages- Chances of medium risk due to the possibility of products unsatisfactory
results (Hart, 2018).

Market development- That is the third strategy of Business expansion which involves
the opportunity of converting The small business into large business, by expanding the business
in new market with existing products and services (Trigeorgis, And et. Al., 2021). In order to
make this analysis effectively that is important to consider the above analysis of porter’s generic
strategies and GE Metrix. In context to BOULD BROTHERS COFFEE this can offer the
medium risk growth opportunity and this can be good option for increasing the value of their
unique coffee test.
Advantage- This gives the opportunity for increasing the brand value and revenue and
help to make the organisation higher with different branches.
Disadvantage- There is the medium risk of loss due to the lack of customer relationship
with the customers of New Market.
Diversification- This is another growth opportunity strategy which involves the
expansion of business at New Market with new products. To make higher revenues and profit.
This can be good for the organisation which is already having higher values in the market with
strong financial stability and that is not good opportunity for selected organization.
Advantages- Give the opportunity for profit maximization by investing on different
product portfolio.
Disadvantage- There is higher risk of loss because for expanding into the new market
with new products organisation need higher investment and at the failure it can be very risky for
the brand (Alsem, 2019).
In context to the BOULD BROTHERS COFFEE Ansoff growth Matrix analysis the most
appropriate opportunity or strategy is can be market penetration it can help in lowering down of
risk and effective enough to extend and grow in the market with their existing product and in the
existing market.
TASK 2
P3: Analysis of the potential source of funding along with it’s one of its benefits and drawback
Meaning of investment decision making- this is the process of effectively managing fund,
within the organisation at different assets of business, so that gold is can be achieved for higher
revenue and firm can earn the higher returns for investors.
Investment decision making

The investment decision making is related to the selective investment of the funds in the
right business unit or assets. This involves the strategic decision in context to the selective use of
funds within the objective of higher returns , this can be long or short term depending on the type
of project or business plan. BOULD BROTHERS COFFEE investment decision making is
involving the management of payback Period and Net present Value in order to achieve
higher returns.
Payback Period- The payback period is involving the strategies or planing of timing
which can be require to recover the cost of investment. This is the simple way of evaluating the
numbers of the years or months takes to return the investment. BOULD BROTHERS COFFEE
is having best strategies and plan in context to their cost recovery.
Net Present Value - This is the important part of the investment decision making which
is also use by the Bould brothers coffee. This is involving the different between the present
values of the cash outflows and cash inflows over a particular period of time. This use the
investment planing and capital budgeting to analyse and evaluate the profitability of project
investment (Coyle, 2018).
Classification of source of funding
There are the different sources of funding on the basis, ownership, period and source of
gathering.
Based on the ownership
Owners fund- this is the type of fund which is facilitated by the owner of company or
solo trader, who provides the funding for different assets of business by retained earnings and
equity share.
Borrowed fund- this is a type of fund which borrow from the others such as public
deposit, commercial bank, financial institution (Hague, 2019).
Based on the period
Long term- money or fund which is borrowed for the 10 years.
Medium-term- open ended debt with the policy of three or four year returns.
Short term- debt provide with the return policy of 1 to 3 year.

Based on source of Internal and external funding- Internal funding is type of self sufficient
funding which comes from the organisation profit and equity. In other hand external funding
collected from the outsiders such as investors in exchange of interest.
Types of funding sources
In the business market there are the various investors and banks who to provide highest
source of funding to the small businesses and large businesses for the Business expansion and
development.
Private bank loan- There are the various private bank who are providing funding for the
small and large business entities in exchange of the selected interest rate and policies.
Advantages- This provide higher amount of funding within short period of time.
Disadvantages- It takes the higher interest rate and documentation procedure with the
huge number of security document collection.
Government bank loan- UK Government always support the entrepreneur and small
business development for the higher economic growth. Due to which government bank is
providing free money and some other funding with exchange of small interest rate.
Advantages- lower interest rate, save and no conflict. This is one of the best funding
source which provide the long-term funding at lower interest rate.
Disadvantages- Its take use time and documentation to proceed funding for business
plan.
Angel investors- This is the type of financial backing funding source provided to the
company in exchange of ownership equity. This is provided by the individuals who are having
high net worth.
Benefits- Easy process of funding by just the presentation of innovative and effective
business plan, this also helps to use the investors knowledge and contact.
Drawback- There will be the chances of higher interference from the side of Angel
investor. Chances of the laws of complete control (Bova, 2018).
Crowd funding- This is the source of funding done by the internet and small social
media group of charity, this source of funding helped to raise the fund for a small business
organisation by collecting the small money from multiple peoples.
Benefits- Easy and effective way of funding, help to collect the fund without any interest
charges (Nakyejwe and Sabi, 2021).